MMC, Inc. HR Tip July 2010 Volume 2 Issue 7

Health Reform Has Arrived

Written by: Kristy Kwan, Benefits and Retirement Plan Administrator

Healthcare reform has begun, and one change, the new maximum dependent age of 26, has already been implemented at some health insurance carriers. Dependents can now remain on their parents’ or guardians’ healthcare policy until the age of 26, regardless of their status – they may be married, single, living at home or not, students, or employed. Currently the only stipulation is: dependents must not qualify for insurance through their own employer *.

It is important to note that only some California insurance carriers have currently executed this change, and that the change only applies to enrolled dependents as of June 1, 2010. Most carriers will follow suit beginning September 23, 2010 (exactly 6 months after the date the Patient Protection and Affordable Care Act was signed). The new dependent age rule will apply at a plan’s renewal date.

Below are our most common healthcare carriers and the dates the new dependent max age will be in effect. As a reminder, your plan must renew after this date. Please also note that these dates are specific to California, but if you live in another state, you should call your local healthcare office to confirm:

Carriers with a June 1st Effective Date
Dependents currently enrolled as of June 1, 2010, may remain on their parents’ insurance. Any dependents that are not currently on the insurance or have been removed prior to June 1st, 2010, must wait until the first plan renewal date after September 23rd, 2010 to be reinstated on coverage.

• Kaiser Permanente
• Blue Cross of California
• Blue Shield of California

Carriers with a September 23rd Effective Date 
Dependents that have been terminated off their parents’ coverage prior to September 23rd, 2010 may be reinstated as of the first plan renewal date after September 23rd, 2010.

• Aetna
• Healthnet
• CalChoice
• Pacificare
• United Healthcare

As always, we here at MMC will bring you the most current and relevant healthcare reform information. Additional news on healthcare reform and the dependent max age change can be found at US government health care reform site. If you have any questions on how these changes will affect you and your business, please feel free to call the MMC Benefits Department at (800) 899-6624.

*Beginning in 2014, dependents will be able to remain on their parents’ policies regardless if they are eligible for insurance through their own employer.

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